Woolworths Expands Dark Store Network to Fuel On-Demand Delivery Boom

Woolworths is keeping its cards close to its chest regarding the expansion of its “dark store” network, a critical component powering its rapidly growing on-demand delivery service, Woolies Dash. The retailer confirmed its strategy is progressing but remains tight-lipped on specific new locations.

The Engine Behind Instant Groceries

So, what exactly is a dark store? Unlike a traditional supermarket open to the public, these facilities operate as fulfillment centers dedicated exclusively to online orders. Think of them as the hidden engines of the e-commerce world, designed for speed and efficiency from the ground up.

Woolworths first lifted the curtain on this strategy in August 2024, launching its inaugural dark store in Cape Town’s Central Business District. The facility serves customers in the city bowl and surrounding suburbs.

A Proven Success Story

By October 2024, the retailer was already hailing the Cape Town pilot as a resounding success. The company reported that the dedicated facility significantly boosted operational efficiency and unlocked more delivery slots for customers in the zone.

At the time, a Woolworths spokesperson told MyBroadband that the layout of the dark store is meticulously optimized for online order picking. This specialized design allows the online team to scale up seamlessly to meet surging demand, a common challenge when fulfilling orders from a standard retail floor.

“We can process more orders through a store where we don’t have to compete with in-store shoppers for aisle space or product availability,” the spokesperson explained.

Eliminating the Aisle Battle

This point is crucial. Typically, Woolies Dash orders are picked from local Woolworths stores. This means online shoppers are effectively competing with customers physically in the store for the last jar of coffee or loaf of bread. The dark store model eliminates this friction entirely.

“The dark store eliminates this competition, and customers enjoy quicker delivery, thanks to a dedicated environment designed to be online-first,” the retailer stated. This dedicated approach also allows Woolworths to offer its full product range to a larger customer base without the constraints of in-store stock fluctuations.

The payoff has been substantial. These improvements have been a key driver behind Woolies Dash growing by a staggering 71% in the last financial year.

A Nationwide Rollout on the Horizon

The long-term vision is clear: to deploy a network of Woolies Dash dark stores across South Africa. This infrastructure is central to building a resilient, future-proof omnichannel offering.

Liz Hillock, Woolworths’ Online and Mobile Director, framed the investment as a core part of the company’s customer experience strategy. “Investing in dark stores is a testament to our focus on creating a future-fit omnichannel offering that leverages and transforms existing assets to continuously improve our customer experience,” Hillock said.

Dash Drives Digital Dominance

The numbers speak for themselves. Launched in December 2020 as a trial in 18 stores, Woolies Dash has become a powerhouse of growth for the retailer.

Financial results for the 52 weeks ending June 29, 2025, reveal the scale of this success. Woolworths’ overall online sales reached R7.78 billion, a healthy 8.9% year-on-year increase.

However, the star performer was undeniably Woolies Dash, which saw its turnover skyrocket by 41.6%. This surge helped push the proportion of online sales within Woolworths’ food category to 6.6%. Online food sales alone grew by 32.9%, contributing a massive R3.33 billion in turnover.

This continues a powerful trend from the previous financial year, where the increased adoption of Woolies Dash, which grew by 71.2%, was the primary catalyst for a 52.8% jump in online food sales.

While Woolworths plays its expansion plans close to the vest for now, the success of its first dark store and the explosive growth of Woolies Dash signal a fundamental shift in how South Africans will shop for groceries in the future.

Source: MyBroadband